Investments in mutual funds are one of the many available investment avenues. Investments in mutual funds comes with many advantages over other traditional investments but still small savings schemes like bank deposit, fixed deposit, NSC, Kisan Vikas Patra, etc. are very popular among investors. The main reason behind the popularity of small savings schemes are guaranteed interest, no fear of losing the principal and easy investment process. After the IT revolution and reach of the internet to even remote villages, common people's awareness about the stock market is also increasing. Now they know about the stock market, mutual funds and many other investments but not to a level wherein they can decide the correct approach.

There are many types of mutual funds scheme, so it is not correct approach to use generalized term "mutual fund investment means investment in stocks." Mutual fund scheme's objective plays a significant role in deciding the investment of the collected funds.